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ScienceDirect Procedia - Social and Behavioral Sciences 130 (2014) 409 – 418

INCOMaR 2013

Sustainability in Corporate Communications and its Influence on Consumer Awareness and Perceptions: A study of H&M and Primark Lilian Dach*, Katrin Allmendinger Hochschule fuer Technik Stuttgart, Schellingstrasse 24, 70174 Stuttgart, Germany

Abstract This paper focuses on the issue of effective web-based corporate sustainability communications to influence consumer awareness and perceptions. Studying the dedicated corporate sustainability websites of Hennes and Mauritz H&M AB and Primark Stores Limited, a qualitative multimethod two-stage research design was applied consisting of a website analysis and twelve semistructured consumer interviews. The results show that the existing corporate images influence the interviewees’ perceptions of the web-based corporate sustainability communications. The developed conceptual framework illustrates the importance of a clearly structured website with visualized, objective and sustainability-specific content to positively influence consumer awareness and perceptions. © 2014 © 2014 The The Authors. Authors.Published Publishedby byElsevier ElsevierLtd. Ltd.Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013. Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013. Keywords: corporate sustainability communications; consumer awareness; consumer perceptions; sustainability

* Lilian Dach Tel.: +49 7150 2826; fax: +49 711 8926 2666. E-mail address: [email protected]

1877-0428 © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013. doi:10.1016/j.sbspro.2014.04.048

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1. Introduction This paper investigates the issue of effectively communicating fashion retailers’ corporate sustainability on dedicated corporate sustainability webpages to create consumer awareness and influence their perceptions. To do this, it focuses on Hennes and Mauritz H&M AB (H&M) and Primark Stores Limited (Primark) as two prime examples of the ‘Fast Fashion’ sector. The latter has been largely criticized by the media for its ostensible resource and labour exploitation in India and Asia (Reisch and Bietz, 2011; Walker, 2013) and thus is difficult to see as sustainable. This paper is hence also related to current discussions regarding whether sustainability can become mainstream in fashion or not (Jones et al., 2012; Ravasio and Pasquinelli, 2013). The described study provides a basis for further research and practical implications for H&M and Primark and other fashion retailers on how to conduct effective web-based corporate sustainability communications. The overall aim of this paper is to analyse and compare how H&M and Primark communicate the issue of sustainability on their websites and hence to investigate whether it is reasonable for them and similar fashion retailers to focus on such web-based corporate sustainability communications as a means of influencing consumer awareness and perceptions. In accordance with Signitzer and Prexl (2008) and Sing et al. (2012) they are defined as external online communications on dedicated corporate websites about corporate sustainability commitment with the purpose to create consumer awareness and influence consumer perceptions towards perceiving H&M and Primark as more sustainable. Nomenclature CSR corporate social responsibility H&M H&M Hennes and Mauritz AB Primark Primark Stores Limited H&M and Primark, two of the top ten apparel brands in Europe (Euromonitor, 2012), were chosen since Primark is seen as a new rival to H&M due to their similar price levels and target customers. Furthermore, both fashion retailers say they are committed to sustainability and actively communicate about their sustainability commitments and activities on dedicated webpages. Due to the fact that the Internet is the preferred channel for corporate sustainability communications (Adams and Frost, 2006), this paper focuses on H&M and Primark’s dedicated corporate sustainability webpages. These are further on referred to as web-based corporate sustainability communications. 2. Theoretical and Empirical Background The literature shows that fashion consumers’ behaviour has been researched around the following reoccurring themes: sustainable consumerism, disposal behaviour and buying behaviour. There is an obvious gap of research relating to consumer awareness and perceptions of web-based corporate sustainability communications of fashion retailers. This paper therefore strives to clarify whether consumers are aware of web-based corporate sustainability communications, how they perceive them and whether there is an added value for fashion retailers in terms of shortterm financial benefits and long-term competitive advantages through brand differentiation and a more sustainable corporate image (Du et al., 2007, 2010). Worldwide research shows that consumers tend to favour companies perceived as socially and environmentally responsible (e.g. Laszlo and Zhexembayeva, 2011). Hence, corporate sustainability communications are increasingly important for providing consumers with the expected transparent information about corporate sustainability (e.g. Du et al., 2010; Mohr and Webb, 2005). This is why an increasing number of businesses now actively engage in corporate sustainability communications (Adams and Frost, 2006). However, only corporate sustainability communications that positively influence consumer awareness and perceptions are effective and contribute to realizing the benefits of a commitment to sustainability such as competitive advantages and increased buying behaviour (Du et al., 2007, 2010; Porter and Kramer, 2006). Since the Internet provides transparency, which is one of the most fundamental aspects of effective corporate sustainability communications, web-based corporate sustainability communications are a relevant means to establish the potential added values mentioned above (Capriotti and Moreno, 2007, 2009; Maanavilja and Hyder, 2010). Hence, it is all the

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more important to define the key crucial factors for effective web-based corporate sustainability communications and give practical implications on how the latter should be designed to positively influence consumer awareness and perceptions. The key critical success factors of web-based corporate sustainability communications were derived by focusing on appropriate recent studies and research e.g. from Blanke et al. (2007), Capriotti and Moreno (2009), Du et al. (2007, 2010), Elving (2010) and Maanavilja and Hyder (2010). The factors used for both, the website and interview analysis, are displayed in Table 1. Table 1. Key critical success factors of effective web-based corporate sustainability communications

3. Methods To investigate how H&M and Primark conduct their web-based corporate sustainability communications and how consumers perceive it, an interpretive epistemological research approach was considered as most appropriate (Bryman and Bell, 2011; Saunders et al., 2012). Furthermore, due to the novelty of the topic and to create a stronger body of evidence and higher reliability through triangulation (Quinton and Smallbone, 2006; Bryman & Bell, 2011), a multimethod qualitative data collection and analysis within two research stages was used. To ensure a more effective comparison of the findings, the data analysis of both stages was based on pre-defined research questions and on similar key themes (Quinton and Smallbone, 2006; Bryman & Bell, 2011). In the first stage of the research, a website analysis of H&M and Primark’s English web-based corporate sustainability communications (front pages) was conducted by the first author. The categories used were based on the literature review and thus included the influences and key critical factors of effective web-based corporate sustainability communications as well as the sustainability related topics of the fashion industry. This enabled an interpretation of what consumers would find relevant for their awareness and perceptions towards H&M and Primark’s web-based corporate sustainability communications. To ensure consistency in the analysis, screenshots of the front pages were used. In order to be more objective, a thematic template using the pre-defined categories and explanatory sub-categories was used (Saunders et al., 2012). If a sub-category was fulfilled, this contributed to a point on the 7-point scale (0-6). The website analysis showed that not all pre-defined categories were in fact fulfilled by H&M and Primark. If neither of them fulfilled a category, it was not used for the interview questions. The second stage of the research collected primary data through semi-structured consumer interviews and was based on the findings of the website analysis. Hence, it also contained the key critical factors of web-based corporate sustainability communications. The interviews were analysed using a mixture of quantitative and qualitative content analysis enabling to identify key themes, patterns and relationships (Mayring, 2002; Gläser and Laudel, 2004). An interview guide was developed and used for each interview to help phrase questions clearly and ensure a certain

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standardisation also maximising reliability and validity (Fisher, 2010; Saunders et al., 2012). To ensure that the convenience sample only included interviewees directly related to the subject of the primary research a purposive sampling strategy was applied (Bryman and Bell, 2011; Adams et al., 2007). To ensure objective evaluations it was mandatory that the interviewees knew H&M and Primark and had shopped there before. Furthermore, the majority of interviewees were chosen on the basis of the fact that they had lived in the UK for a longer period of time (at least four months). This was assumed to be critical to attain good answers since Primark only recently opened stores in Germany (Shannon, 2013) and thus it was expected that interviewees who had never lived in the UK would have significantly less knowledge about Primark than about H&M. To the author’s best judgment the postgraduates’ personal and educational background were expected to enable the best answers to the research questions and objectives. Based on this, twelve German postgraduate students were mostly interviewed face-to-face. However, due to time and resource constraints three of the interviews were conducted online via Skype. Since it was expected that few consumers would know the web-based corporate sustainability communications, the interviewees were given the opportunity to look at each website during the interview before answering the specified questions. Since people are automatically redirected from the German H&M homepage to the English corporate sustainability webpages, it was decided to use the English webpages to ensure a better comparison. In hindsight, this did not influence the findings since only one of the interviewees commented on the fact that the webpages were in English. Furthermore, the focus was on the front page of each web-based corporate sustainability communication. 4. Website Analysis – Findings and Analysis The website analysis was conducted to investigate whether, and if so how, H&M and Primark’s web-based corporate sustainability communications fulfil the defined key critical factors in the literature for effective webbased corporate sustainability communications. This aimed to provide an answer to the research question of how H&M and Primark communicate sustainability in their corporate communications through focusing on the front pages of their web-based corporate sustainability communications. The website analysis showed that neither H&M nor Primark fulfilled all key critical factors for an effective and credible web-based corporate sustainability communications. This is displayed in Figure 1, which illustrates and compares the strength and extent to which H&M (red) and Primark (turquoise) fulfilled the previously discussed key critical factors of effective web-based corporate sustainability communications (cf. Table 1). Before explaining Figure 1 in more detail, it is notable that the average rating was 3.5 for H&M and 3.25 for Primark on a scale from zero to six. This showed that both fashion retailers are on a similar average level in regard to their web-based corporate sustainability communications, although, as Figure 1 illustrates, they differ significantly regarding several points.

Fig. 1. Findings of the website analysis

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The data of the website analysis allows the conclusion to be drawn that both fashion retailers need to improve their web-based corporate sustainability communications to achieve effective and credible web-based corporate sustainability communications and through that the related potential added values of competitive advantages and financial benefits (Du et al., 2010; Porter and Kramer, 2006). This is in line with Maanavilja and Hyder (2010) and Capriotti and Moreno (2007, 2009) who think that the possibilities offered by web-based corporate sustainability communications are not yet fully used by most companies, especially in the context of interactivity. When looking more detailed at Figure 1, it is clear that Primark’s strengths lie in the more basic critical factors such as usability and website design, accessibility and website content. H&M however excels in the more sustainability-specific content such as industry-specific sustainability issues and the sustainable development agenda. Figure 1 also shows that accessibility (a quick and easy navigation from their corporate homepages to their web-based corporate sustainability communications) is an issue for both, although a more severe one for H&M. Furthermore, in contrast to Primark, H&M does not offer any contact, feedback or the opportunity of any dialogue with regard to sustainability. Finally, Figure 1 shows that neither H&M nor Primark reach a sufficient level in the category of sustainability reports. The interviewed consumers considered four categories of the website analysis (framed in Figure 1) as most important for effective web-based corporate sustainability communications. 5. Consumer Interviews – Findings and Analysis To investigate whether the established and analysed key critical factors were also important for consumer awareness and perceptions, twelve interviews with German postgraduate students were conducted. The research findings also provide an answer to the research question of whether, and if so how, H&M and Primark’s web-based corporate sustainability communications affect consumer awareness and perceptions and whether they add value for H&M and Primark in the context of competitive advantages. Overall, the findings show that although the web-based corporate sustainability communications were assumed to at least slightly affect the perceived corporate images of H&M and Primark towards more sustainable ones, the web-based corporate sustainability communications did not influence them. Yet, interviewees’ previously perceived corporate images of H&M and Primark heavily influenced how the web-based corporate sustainability communications were perceived. In particular, Primark’s web-based corporate sustainability communications was perceived as being more credible than H&M’s web-based corporate sustainability communications. However, due to Primark’s negatively perceived corporate image H&M was ultimately still perceived as more sustainable.

Fig. 2. Key findings of interviews.

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5.1. The issue of awareness and accessibility None of the interviewees has visited or was aware of H&M and Primark’s web-based corporate sustainability communications. Since awareness is necessary to influence consumer perceptions of web-based corporate sustainability communications (e.g. Blythe, 2013), the lack of awareness of H&M and Primark’s web-based corporate sustainability communications can be concluded to be a significant issue. In particular in the case of H&M the lack of awareness arguably is related to the issue of accessibility. This was similar to the findings of the website analysis, which showed that although H&M and Primark have an issue with accessibility it was more significant for H&M. More than half of the interviewees said that they have shopped online at H&M. To do this, they needed to access the online shop via H&M’s corporate homepage and could have been made aware of the web-based corporate sustainability communications if they were better accessible. The difficult accessibility was furthermore shown to negatively affect H&M’s credibility. In contrast, for Primark, accessibility was not evaluated as being problematic. Almost all interviewees said that the link to the web-based corporate sustainability communications was clearly visible and furthermore, the name of the link (Ethical Trading) was associated with sustainability. Since it was furthermore found that almost none of the interviewees would visit the web-based corporate sustainability communications out of self-interest, creating awareness and facilitating accessibility, in particular in the case of H&M, seem to be highly important for effective web-based corporate sustainability communications. This is in line with previous research (e.g. Du et al., 2007, 2010; Ravasio and Pasquinelli, 2013), which found that general awareness of corporate sustainability commitment was low. Furthermore, the findings also tally with the convenience issue and ‘intention-behaviour-gap’ (e.g. Ellis et al., 2012; Fischer, 2012), indicating that, although fashion consumers demand information about fashion retailers’ corporate sustainability commitments, they would not actively search for it. 5.2. How usability and website design affect credibility The findings show that interviewees’ perceptions of the two web-based corporate sustainability communications significantly differed and that furthermore, usability and website design affected the perceived credibility. Whereas Primark’s website usability and content were perceived as being honest and credible, ten interviewees perceived H&M’s usability and website design as artificial and inappropriate for the sustainability topic. In contrast to the results of the website analysis, H&M’s website usability and design were perceived as low since the interviewees could not understand what the website was about. Furthermore, H&M's web-based corporate sustainability communications were perceived to be either a shop or an advertisement for children’s clothes and it was also perceived as artificial and a mere self-portrayal. Both perceptions added to the fact that H&M’s web-based corporate sustainability communications were not associated with sustainability. In contrast, Primark’s website usability and design was perceived to contribute to a clear and easy understanding of what the website was about, because of a clear structure and appropriate headlines and key words for the sustainability topic. Therefore, Primark’s web-based corporate sustainability communications were perceived to be honest, credible and related to sustainability without the negative aspect of self-portrayal. This was consistent with the website analysis, which found that Primark’s website usability and design should contribute to effective and credible web-based corporate sustainability communications. The findings are consistent with findings of researchers such as Capriotti and Moreno (2007, 2009), Blanke et al. (2007) and Maanavilja and Hyder (2010). The findings also indicate that usability and website design heavily influence the perceived credibility of H&M and Primark’s web-based corporate sustainability communications. Although website content also influenced the credibility, usability and website design seemed to be more decisive factors.

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5.3. The importance of credible and objective website content The findings show that a credible and objective web content was perceived as being important to achieve credible corporate sustainability communications. Especially partnerships with renowned sustainability organisations, initiatives for sustainable consumption and third party references were topics that interviewees felt contributed to the credibility and objectiveness of the website content. Yet, the perceptions that these topics added to credibility were influenced by the perceived corporate image. In contrast to the findings of the website analysis however, sustainability visions and reports were not perceived to significantly increase credibility. Topics that interested the interviewees (‘All for Children’, partnerships with WWF or UNICEF and the garment collecting initiative in the case of H&M and ‘How we work’ and a video in the case of Primark) were all more socially oriented. 5.4. Influences of corporate and industry image Primark’s web-based corporate sustainability communications were perceived to be more credible than H&M’s, and thus interviewees said that they would perceive Primark as more sustainable if it were only for their web-based corporate sustainability communications. Nevertheless, the interviewees had a more positive perceived image of H&M, which ultimately led them to perceive H&M as more sustainable than Primark. Hence, Primark’s negatively perceived corporate image dampens the positive effects of their web-based corporate sustainability communications. To investigate the perceived influences of the corporate images of H&M and Primark interviewees were asked what first came to their minds when thinking about the two fashion retailers. Whereas the majority of attributes named by the interviewees were 'bad quality' and 'chaotic stores', none of the interviewees mentioned 'sustainable', 'environmentally responsible' or 'ethical'. The reasons for this were that, in particular, Primark’s corporate image was related to cheap clothes and thus interviewees felt that Primark was unable to produce clothing in a sustainable way. This was also seen as one reason why interviewees did not mention sustainable as an attribute related to H&M. The main reason why H&M was not associated with sustainability, however, was found to be a lack of awareness about H&M`s sustainability commitment. The potential influences of the industry-image were investigated by asking whether the interviewees were aware of fashion retailers trying to establish a more sustainable image and if they could name such a company or brand. The majority said that they were generally aware of this but could not name a specific brand and did not perceive the fashion industry as generally sustainable. The findings of the interviews confirmed those of Bhattacharya and Sen (2004), Du et al. (2010) and Yoon et al. (2006) who amongst others, all found that corporate reputation (here: corporate image) is generally important for effective web-based corporate sustainability communications and furthermore potentially amplifies or dampens the effects of corporate sustainability communications. 5.5. Added values and perceived motives Added values of effective web-based corporate sustainability communications in the form of competitive advantages and financial benefits could not be clearly established. This was due to the fact that it was found that the web-based corporate sustainability communications did not influence interviewees’ perceptions of H&M and Primark’s corporate images. Hence, and furthermore, neither recommendation nor buying behaviour of the interviewees was influenced after looking at the web-based corporate sustainability communications. Half the interviewees perceived Primark as more sustainable solely based on their web-based corporate sustainability communications, yet they said, "At the end the own experience and the previous image counts". In the case of H&M interviewees said that they expected such a web-based corporate sustainability communications and behaviour from H&M and thus it would not change their previously perceived corporate image of H&M. Hence, the results show that web-based corporate sustainability communications has its limits in influencing consumer awareness and perceptions and that rather the perceived corporate image influences consumer perceptions than the web-based corporate sustainability communications. The perceived motives for why H&M and Primark engaged in web-based corporate sustainability communications differed significantly. Whereas H&M’s web-based corporate sustainability communications were perceived as extrinsically motivated (e.g. the interviewees called it image selling, marketing

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and advertisement), Primark’s web-based corporate sustainability communications were seen as more credible and intrinsically motivated. This can explain why H&M’s web-based corporate sustainability communications are perceived as less credible than Primark’s. 6. Discussion and Recommendations The overall aim of this paper was to analyse and compare how H&M and Primark communicate the issue of sustainability on their websites and to investigate if they are effective in influencing consumer awareness and perceptions and lead consumers to perceive H&M and Primark as being more sustainable. The results of the website analysis show that both corporate sustainability communications are on an average level and should be improved to increase their effectiveness. This was further confirmed by the semi-structured interviews, which helped to classify the influence of H&M and Primark’s web-based corporate sustainability communications on consumer awareness and perceptions. In contrast to what the reviewed previous research and studies suggested, this study shows that the investigated web-based corporate sustainability communications did not influence consumer perceptions of H&M and Primark’s corporate images. Since it could furthermore not be established that web-based corporate sustainability communications lead to added values in terms of competitive advantages through a more sustainable corporate image, it could be argued that H&M and Primark as well as similar fashion retailers should not further focus on web-based corporate sustainability communications. Yet, the conducted research established that Primark’s web-based corporate sustainability communications were perceived as being credible if consumers would not have been influenced by the perceived unsustainable corporate image of Primark prior to accessing the website. Hence, this arguably indicates that web-based corporate sustainability communications can potentially influence consumer perception of corporate sustainability. More research has to be done to confirm this result. 6.1. Conceptual framework and practical implications for effective web-based corporate sustainability communications Figure 3 displays the concluded conceptual framework for effective web-based corporate sustainability communications. The illustrated relations are based on the relevant key findings from the website analysis and the conducted interviews also including the relevant key findings of the reviewed literature, research and studies. As displayed in Figure 3 not all assumed theoretical relations were confirmed by the conducted website analysis and interviews. The confirmed relationships are illustrated with blue arrows whereas the theoretical relations are displayed in grey arrows since they were not confirmed by the findings.

Fig. 3. Concluded conceptual framework for effective web-based corporate sustainability communications.

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Overall it can be concluded that consumer awareness was non-existent and that the perceived corporate images heavily influenced consumer perceptions of the web-based corporate sustainability communications. Since neither interviewees’ buying nor recommendation behaviour nor their perceptions of the corporate images were influenced by the web-based corporate sustainability communications, no added values in the form of competitive advantages were established. Neither was the assumed influence of the industry image on consumer perceptions of the webbased corporate sustainability communications. Hence, one could argue that H&M and Primark’s web-based corporate sustainability communications is not effective in terms of credibility and establishing added values in the context of consumer awareness and perceptions. Nevertheless, it was found, as illustrated through the blue bold arrows, that the perceived corporate image strongly influences consumer perceptions of the web-based corporate sustainability communications. From the practical point of view it is advisable to provide a clearly structured website with visualised, objective and sustainability specific content. This should include subtle, factual and indirect communication by displaying third party references, partnerships with renowned sustainability organisations and can be further reinforced by visualising precise examples, projects and activities. Thus, self-absorbed, advertising and self-portrayal appeal, which were associated with H&M’s web-based corporate sustainability communications, should be avoided. Furthermore, it is recommended to focus on socially oriented sustainability topics in particular and illustrate them, for example, with videos to present realistic and understandable content. 6.2. Necessity of further research As with any qualitative research subjectivity was anticipated to be a limitation (Saunders et al., 2012). Thus, the research did not strive to be generalizable to the whole population also bearing in mind that websites as well as consumer perceptions can rapidly change (Bryman and Bell, 2011). The data of the website analysis has to be interpreted with caution because only the front pages of the websites were analysed and thus some key critical factors could not be integrated into the analysis. Nevertheless, it still allows the conclusion to be drawn that both fashion retailers need to improve their web-based corporate sustainability communications. Finally, it can be concluded that future research is necessary to improve the effectiveness of web-based corporate sustainability communications of fashion retailers similar to H&M and Primark and to thus enable them to establish added values. It is possible that for instance the German interviewees’ and UK students’ perceptions differ since Primark has been operating in the UK since 1973 (Primark, 2013). International research is also important as H&M and Primark and similar fashion retailers operate on a multinational scale, which necessitates awareness of cultural differences. Moreover, researchers have not yet explicitly discussed the relationship of usability, website design and their influence on perceived credibility and motives for why companies engage in web-based corporate sustainability communications. A positive side effect of web-based corporate sustainability communications in the context of fashion is that a large number of consumers are educated towards a more sustainable consumption (Auger et al., 2010; Danish Fashion Institute and BSR, 2012; Siebenhüner and Arnold, 2007). Hence, it might even provide a larger societal benefit in creating awareness and maybe a change in consumer behaviour. 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